The Securities and Exchange Commission (SEC) has approved for the Energy Commercial bank to issue an Initial Public Offering (IPO) to help it meet the minimum capital requirement for banks.
The bank should resort to the investing public to raise 340 million cedis which represents about fifty percent of the company’s stake.
Though SEC’s approval comes a month after the originally planned August date, it suffices as a plus for Energy bank’s ability to meeting the new minimum capital requirement.
Energy bank now has the clearance to go to the public to raise 340 million cedis to shore up its capital.
The processes commenced in March this year; seven months after the announcement of the new minimum capital for banks.
Energy bank is confident that it will raise enough capital on the Ghana Stock Exchange because of its stability and performance over the years.
The 2018 half year performance of Energy bank shows that its total income increased by 72 percent between 5 million cedis compared to the estimated 3 million cedis recorded in the same period last year.
Similarly, the bank’s profit after tax increased a significant growth of over 400 percent to record 985 million cedis between January and June this year; compared to the 196 million cedis recorded the same period last year.
Energy bank is expected to now engage the IC Securities is the Transaction Adviser and is expected to market the shares to many investors within the country.
When the IPO is successful, Energy bank will be the eleventh commercial bank to list on the Ghana Stock Exchange.
The process to allow Ghanaians to become part owners of the lender began in March 2018.